GREY DIRECTORS AND TIMELINESS OF FINANCIAL REPORTING: EVIDENCE FROM NIGERIA
Abstract
This study examined how grey directors’ influence in corporate boards affects the timeliness of financial reporting among firms in Nigeria’s financial services sector. Using a panel dataset comprising 330 firm-year observations from 30 listed companies over the period 2012–2022, the study operationalized reporting timeliness through audit report lag and captured grey directors’ influence via their equity ownership stakes. Descriptive statistics, correlation analysis, and fixed-effects regression were used to analyse the data. On average, financial reports were filed 104 days post fiscal year-end, indicating moderate reporting delays within the sector. The findings reveal a negative and statistically significant relationship between grey directors’ influence and audit report lag, which explains that a higher involvement of grey directors is associated with improved financial reporting timeliness. Notably, while the correlation analysis indicated an insignificant association, the regression analysis yielded significant results, underscoring the nuanced role of grey directors in corporate governance dynamics. This study contributes to the literature on board composition and disclosure timeliness in emerging markets and offers policy implications for enhancing governance structures. It recommends that shareholders consider retaining high-performing grey directors for extended tenures; preferably spanning at least, a decade; to foster consistency and efficiency in financial reporting practices
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Grey Directors, Financial Reporting Timeliness, Audit Report Lag, Corporate Governance, Emerging MarketsDownloads
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Copyright (c) 2025 Urhuemu Paul Gelor, Edirin Jeroh, Frank O. Ebiaghan
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